Disclosure of Adjustable Rate Mortgages (ARMs) Rates

OMB Control No: 2502-0322	ICR Reference No: 202309-2502-003
Status: Received in OIRA	Previous ICR Reference No: 202001-2502-009
Agency/Subagency: HUD/OH	Agency Tracking No:
Title: Disclosure of Adjustable Rate Mortgages (ARMs) Rates
Type of Information Collection: Reinstatement with change of a previously approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 10/03/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	60,401	0
Time Burden (Hours)	3,020	0
Cost Burden (Dollars)	0	0

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Abstract: The terms of all ARMS insured by HUD-FHA are required to be fully disclosed as part of the loan approval process. Additionally, an annual disclosure is required to reflect any adjustment to the interest rate and monthly mortgage amount.

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Authorizing Statute(s): PL: Pub.L. 98 - 181 251 Name of Law: The Housing and Urban-Rural Recovery Act of 1983

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 128	07/06/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 66041	09/26/2023
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title Form No. Form Name Disclosure of Adjustable Rate Mortgages (ARMs) Rates

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	60,401	0	0	0	-48,155	108,556
Annual Time Burden (Hours)	3,020	0	0	0	-2,408	5,428
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: There are currently 60,401 active ARM loans as of March 2023, which require periodic ARM Disclosures. This is a decrease of 48,155 loans from the number of ARM loans described in the prior PRA. The decrease in the number of ARM loans was reasonably expected since interest rates were low, and borrowers could lock a low rate for the life of their mortgage. Borrowers have steered away from a temporary adjustable interest rate that can increase and lead to higher monthly payments in the future.

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Annual Cost to Federal Government: $12,781

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Carmen Mead 202 402-6651 [email protected]

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
		(a) It is necessary for the proper performance of agency functions;
		(b) It avoids unnecessary duplication;
		(c) It reduces burden on small entities;
		(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
		(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
		(f) It indicates the retention periods for recordkeeping requirements;
		(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
			(i) Why the information is being collected;
			(ii) Use of information;
			(iii) Burden estimate;
			(iv) Nature of response (voluntary, required for a benefit, or mandatory);
			(v) Nature and extent of confidentiality; and
			(vi) Need to display currently valid OMB control number;
		(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
		(i) It uses effective and efficient statistical survey methodology (if applicable); and
		(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date: 10/03/2023

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